Making Tax Digital – What You Need To Know
You might have heard that tax is going digital in 2019. But what does that actually mean? What changes do you have to prepare for and how will it affect you?
For the moment you only need to worry about the changes if you’re VAT registered. Other tax changes will be coming in April 2020 that might affect smaller businesses.
Making tax digital is all about taking some of the burden from HMRC – having a simple format for VAT returns that they can work with. If you’re a business, sole trader or company with a turnover exceeding £85,000 you’ve got until the 1st of April 2019 to prepare for the changes.
However, if you’ve already got an accounting package in place with Sidekick you’re one step ahead of the game and might not have to change much. If you don’t – you have until the 1st of April 2019 to comply.
What Does Compliance Look Like?
It mostly consists of changes to the way you keep your records. Say goodbye to paper and spreadsheets. If you don’t have a ‘making tax digital’ compliant accounting package right now, you’re going to need to get one.
Though, there are lots of other benefits to having a good accounting package:
- Real time data and information about your business
- Multiple users can access at once
- Automatic updates to tax changes etc.
- Cloud based and backed up frequently, so you don’t have to worry about servers etc.
We’re going to be working closely with all our customers to make sure they’re compliant in readiness for April the 1st 2019. If you have any specific concerns or questions we’d love to hear from you, as part of our package we offer guidance and advice on a wide range of business issues. Get in touch now.